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Reflections after Grenfell: A safety-first approach to construction procurement

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Insight
Summary

By Louise Roberts

The Grenfell Tower Enquiry’s Phase 2 report highlighted significant failings in the procurement process that contributed to the tragedy in June 2017, which claimed 72 lives. While procurement failings were not the sole cause, poor supplier selection significantly compromised resident safety. What role can procurement leaders and professionals in both the public and private sectors play in preventing similar disasters in the future?

This article examines how we must shift from treating safety as a site-specific concern to embedding it as a core principle across every stage of project execution, including procurement. Procurement professionals and leaders responsible for sourcing construction services must adopt a safety-first approach, prioritising securing the right supplier capabilities and complying with regulations. 

Background: Grenfell Tower refurbishment and procurement failings

Grenfell Tower, a 24-story residential building in London, underwent a major refurbishment between 2012 and 2016. The Royal Borough of Kensington and Chelsea (RBKC) owned the tower and delegated its management to the Kensington and Chelsea Tenant Management Organisation (TMO), which was responsible for procuring services for the tower’s refurbishment. 

At the time, TMO was subject to the Official Journal of the European Union (OJEU) procurement rules, which required open tendering for services costing more than £174,000. However, an inquiry later found that TMO encouraged suppliers, particularly Studio E Architects, to keep fees below this threshold. This allowed Studio E – which lacked the expertise required to refurbish residential high-rises – to bypass an OJEU-compliant competitive tender process. Further procurement failings were identified in the appointment of the Principal Contractor, Rydon, which was given an unfair advantage through closed-door agreements regarding price reductions upon award. 

This relentless focus on reducing costs over ensuring safety and quality also shaped the choice of the external cladding system. The selected aluminium composite panels with polyethylene cores were found to be highly combustible; fire testing was also inadequate, and expert recommendations were disregarded. 

The enquiry revealed a lack of accountability among the client, suppliers, and contractors regarding safety compliance. Ultimately, the report emphasised how TMO’s price-driven procurement process led to the failure to appoint an architecture firm with the right knowledge, skills, and experience, creating severe and avoidable safety risks. 

How can Procurement enhance safety in construction projects?

Whether it takes place under regulated procurement processes (such as public sector rules) or in the private sector, procuring for construction should never be treated as a purely price-centric exercise. Instead, it must ensure supplier competency, fair competition, and long-term value delivery. 

In order to appoint the appropriate teams and individuals, a comprehensive and robust pre-qualification assessment must be undertaken to ensure bidders have the right knowledge, skills, and experience to provide services or works as needed. UK construction procurement exercises should align with three key legislations and regulations:

  1. Procurement Act 2023
  2. Construction Design Management (CDM) Regulations 2015 
  3. Building Safety Act 2002

Procurement processes for construction professional services or principal contracts should typically follow the two-stage process below to ensure safety and compliance. 
 

Stage 1: Qualification Questionnaire

This is typically a standard document the client issues in a tender to request information from potential supplier(s), particularly regarding their design and delivery teams, to support construction appointments. 

To ensure safe practices from the outset, procurement teams must clearly define duty holder roles under CDM regulations and the Building Safety Act and assess suppliers’ knowledge, skills, and experience against robust assessment principles. Skipping these steps increases the risk of appointing underqualified teams, which may lead to safety issues, substandard design, and poor site coordination – and, ultimately, reworks, project delays, and increased costs. A robust procurement process will enhance the quality of the appointed supplier(s), strengthening project execution, accountability, and a safety-first approach. 

Stage 2: Request for Proposal (RFP)

Typical projects will use a second stage to request prices from supply chain partners to provide pricing against the agreed scope; however, this can be a restrictive approach to obtaining a price and can lead to rework. 
The RFP phase seeks pricing based on an agreed scope, but it must go beyond cost alone. A best-practice RFP should include:

  • Weighted evaluation criteria that balance cost, quality, sustainability, and safety.
  • cenario-based assessments requiring suppliers to demonstrate their problem-solving approach to safety risks.
  • A collaborative bidding process, allowing suppliers to refine their proposals based on discussions with the client.
  • Benchmarking against industry standards to ensure suppliers meet or exceed regulatory requirements.

Key takeaways and recommendations for procurement leaders

 

1. Prioritise competency over cost

The supplier selection process for construction projects should emphasise supplier qualifications, past experience, and safety compliance over short-term cost-saving measures.

2. Ensure fair and transparent procurement

Open and fair tendering processes are critical to avoiding undue influence or favouritism and selecting the right suppliers.

3. Comply with regulations

Make sure all construction projects rigorously adhere to procurement laws, health and safety regulations, and industry best practices.

4. Strengthen fire safety measures

Materials and designs must be thoroughly tested for fire safety risks, and procurement teams should always consult fire safety engineering experts.

5. Accountability across the supply chain

All stakeholders, from contractors to regulatory bodies, must be held accountable for project execution and compliance to safety standards.

6. Invest in ongoing training and supplier development

Leaders should invest in continuous professional development for procurement teams to keep them updated with evolving best practices and safety standards.

The Grenfell tragedy is a devastating example of the catastrophic human cost that can result from poor procurement processes and safety failings in construction projects. Procuring construction services must be grounded in a firm commitment to safety and accountability. Transparent tendering, rigorous supplier assessments, and a strict adherence to rules and regulations are essential to preventing irreversible human, financial, and reputational damage. 

Organisations must approach procurement as a critical lever for risk mitigation and long-term value delivery – not as a mere short-term cost-saving tool. And, while effective procurement is key, ensuring safety in construction projects requires collaboration and a shared commitment to best practices across the business, including procurement, design, delivery, and regulatory oversight functions. This shared responsibility is essential to delivering high-quality projects that safeguard those who live and work in the buildings we create. With a solid safety-first foundation in place, organisations can then approach the topic of driving value in construction projects.

In the next article of this series, we will offer additional insights into how procurement teams can play a key role in the safe delivery of construction projects through effective stakeholder collaboration.
 

A commitment to safety

The tragic losses from Grenfell have prompted changes across the construction industry and procurement teams. However, there is still much work to do. For many organisations, external expertise can help further strengthen compliance, accountability, and project outcomes. 

At Efficio, we work closely with organisations to embed safety-first procurement practices in construction projects, helping procurement practices keep pace with evolving regulations and best practices.

  • Supporting new projects: We help organisations develop tailored procurement strategies and support the assessment and appointment of design and delivery teams. For public sector clients, this could involve establishing a closed framework or conducting a specific procurement exercise to select the most qualified suppliers. 
     
  • Strengthening existing agreements: Our experts have significant experience conducting gap analyses on existing agreements to ensure all appointments meet required standards. We develop targeted strategies to address gaps, working closely with the supply chain to minimise disruption. 


If you’d like to explore how we can support you in strengthening safety within your procurement processes while delivering long-term value, please feel free to get in touch.  

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